Lebovits v. 104 Division Ave. Housing Development Fund
Justice Yvonne Lewis
Owner 104 Division Avenue Housing Development Fund moved for summary judgment dismissing a shareholder action directing them to execute a proprietary lease. Remaining shareholders ratified a resolution canceling all existing leases and giving each shareholder a uniform, substitute lease conforming with the corporation's bylaws. Plaintiffs were more than two months in arrears under their existing leases. Plaintiffs failed to execute the new leases, failed to comply with a notice to cure and were served with a notice of termination. The court found 104 made a prima facie showing of entitlement to summary judgment, noting plaintiffs were not entitled to notice of the shareholders' meeting as they were not entitled to vote at such since they were in arrears. Plaintiffs also failed to retrieve notices that were given from the post office, and the court stated the failure to receive notice resulted from plaintiffs' own fault, noting they may not frustrate service by failing to claim certified mail. Further, the court stated transferring the remaining branch of 104's motion for summary judgment on its counterclaims to Brooklyn Civil Court for joinder with the pending landlord/tenant holdover action was warranted.